Trust Redefined ......

Blockchain enables peer to peer transaction. Eh? English please! What does it mean? Let me explain using an example. Ivan lives in NYC. He sells hotdogs at times square. His parents live in Kiev and next week is their 25th wedding anniversary. He wants to send some money to his parents. He goes to his bank and transfers $500. Ivan is banking here for last 5 years. The bank has millions of customers and is member of Federal Reserve System and regulated by SEC. Ivan trusts this bank, he is confident that his bank will deliver the money to his parents. However this trust comes with hefty cost. His bank charged him $50 and it will take 3 days for the money to appear in his parents account. He wishes there was a cheaper and faster way. Blockchain, technology can do Peer (Ivan) to peer (Ivan’s parents) transaction (transfer) without intermediary (Bank). So you may ask, can Ivan send money to his parents without an intermediary (Bank)? Answer is yes. With Blockchain this transfer is instantaneous and there are no intermediaries. Cost associated with this transaction is negligible. Sounds great but I am still confused, if not bank, then who will transfer the money? Well this is the most amazing feature of this technology. This technology redefines how we trust. Blockchain is a technology protocol which enables data (money) to be exchanged (transferred) between counter-parties within the Blockchain platform.

According to IBM 90% of the data in today's world has been created in the last two years alone, at 2.5 quintillion bytes of data a day! Data is recognized as an important corporate asset that needs to be safeguarded. Most of this data is stored in a centralized data warehouse. Making it easy for cyber criminals to hack, there are numerous examples, US Fed, LinkedIn, Home Depot and many others were hacked. Blockchain stores data in a de-centralized network. Hacking de-centralized network is extremely difficult. Imagine a bank robbery, robbers get in the bank, open the valult (centralized data) and take the money. What if every dollar bill is cut into thousand of pieces and deposited in thousands of vaults across the globe. In order for a robbery to be successful robbers need to rob all the banks across the globe. Bring all the robbed pieces of dollar bills in one central location and put together all the pieces, like solving a very complex jigsaw puzzle. In Blockchain the data is encrypted and then broken into thousands of pieces and stored in thousands of computers in the blockchain platform. One can only access the information if all the pieces (think of jigsaw puzzle) come together and key is used to unlock. The key stays is with the originator of transaction (Ivan). I am not saying its impossible but isn't it extremely difficult to rob all these banks, put the pieces together and find the key to make the dollar bill usable?